Top 5 Nigerian Companies Stocks Recommend for Investors
Zenith, FBN Holdings, and MTN Nigeria topped the lists of some listed companies identified to have potential upside, as per details from Cowry Asset Limited recommendation for the week.
The equities market has become money making machine for investors seeking alpha. The strong return of about 37% in 2024 is a testament that stocks investors are cashing out big.
The thing is, there are few other easier ways to make money without taking additional risks. Those who dares, gain and with fluctuating economic condition, it will be nice if you can dare.
Zenith Bank
Equities analysts at Cowry Asset Limited set price target for Zenith Bank Plc at N62, though the Tier-1 bank is trading at N46.50 on the Nigerian Exchange. According to Cowry Asset, Zenith Bank has 35.22% potential upside, which warranted the investment firm’s buy recommendation.
The banking stock had reached N47.35 as its 52-week, and this is far ahead of its lowest market price of N28 with the same period. Equities analysts forecast Zenith Bank earnings per share to print at N21.07.
FBN Holdings
FBN Holdings is currently trading at significant discount to its 52-week high in the equities market. To the mind of stock analysts at Cowry Asset, the oldest listed financial institution has potential to increase by 59.57% on a price target of N45.
The counter is trading at N29.50 in the equities market with N14.72 earnings per share which has been forecasted to increase by 13.31% to N16.68. FBNH peaked at N43.95 before the stock retreated.
Equities analysts are of the view that the financial institution share price will rebound on good earnings expectations and some level of internal mess clean up that has started.
MTN Nigeria Plc
MTN Nigeria is rated buy despite the fact that analysts estimated showed that its negative earnings per share would widen by more than 5% from 24.48% to N25.78. According to details from Cowry Asset Limited stock recommendation, the telecom company has 31.50% potential upside set between its current and target price.
MTN Nigeria target price was set at N263, versus its market price of N200. Its share price had rebounded from N170 range due to recent debt market visit where the telecom company raised funds to finance its working capital.
Its debt finance and equities fund had plunged due to successive huge FX losses that damaged the telecom company’s balance sheet last year. Cowry Asset target price of N263 still far below MTN Nigeria’s 52-week high rate of N319.80, suggesting that the stock rebound may be actually slow as investors take caution and watch how the telecom tower renegotiation and localisation of debt deals would pan out in its quarterly earnings.
NAHCO Plc
Nigerian Aviation Handling Company, NAHCO, Plc made it to buy recommendation list with 27.05% upside potential as per equities analysts forecast. The transportation stock target price is set at N61, a significant amount higher than its current market price of N48.
The company’s earnings per share is expected to print at N5.02, which is 6.58% above its current earnings per share of N4.71. NAHCO is trading at moderate discount of less than 2% to its 52-week on the Nigerian Exchange.
The stock had reached N48.85 with the last 12 months before slight profit taking activities drag the share price down to N48 in the equities market. But it is far ahead its 52-week low, N24, suggesting strong market re-rating of the transport company’s valuation.
Stanbic IBTC
Tier-2 lender, Stanbic IBTC Plc, has more than 43% upside potential as per details from stock analysts at Cowry Asset recommendation list. The banking stock price target is set at N83, 43.10% higher than its current market price of N83.
The bank’s earnings per share is estimated to sink to N11.12 from N13.90 despite high interest rate environment that has lifted average industry margin. To the mind of equities analysts, Stanbic IBTC share price has capacity to inch close to its 52-week high on the Nigerian Exchange.
Cowry Asset stocks analysts set target price at N83, while the stock best price in the last 52-week was N84. Representing a discount of about 31% to 52-week high, Stanbic traded at N58 in the local market. #Top 5 Nigerian Companies Stocks Recommend for Investors
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